Most Gulf stock markets rose in early trading on Tuesday, with diplomatic moves led by Saudi Arabia, Turkey and Pakistan to contain the military escalation, following a meeting of officials from the three countries with Iranian officials in Tehran on Monday.
In the Saudi stock market, the general index rose by 0.5 percent, supported by the rise of Al Rajhi Bank shares by 0.6 percent.
In the UAE, the Dubai Financial Market index rose by 0.6 percent, supported by a rise in Emaar Properties shares by 1.8 percent.
In a related context, DIB Holding, which owns the Dubai Investments Real Estate Complex, is seeking to raise up to $543 million through an initial public offering, in a move that may represent the first listing in the Emirates this year.
The Abu Dhabi Securities Market index also rose by 0.3 percent, while the Qatari index recorded the largest gains in the Gulf, rising 1 percent, with the share of Qatar National Bank, the largest bank in the region, rising by 0.7 percent.
The performance of the markets came amid continuing regional tensions. On Tuesday, the Saudi-led coalition in Yemen announced the interception and destruction of ballistic missiles and drones launched by the Iran-backed Houthi militia towards two regions in Saudi Arabia.
The Tehran meeting was the first high-level contact between Iran and the three countries, which signed a joint defense agreement last August, since the outbreak of the war that began with American and Israeli strikes on Iran, before the escalation spread to Saudi Arabia and Yemen.
Cyprus has taken a step closer to transforming its offshore natural gas into a source of income for the country, after it signed contracts worth up to $1.8 billion to develop the offshore “Kronos” gas field.
The Greek newspaper Kathimerni reported on Tuesday that the agreements - which were signed at the Presidential Palace - cover the construction and installation of the infrastructure necessary to develop the field that was discovered in Block No. 6 of the exclusive economic zone of Cyprus.
Production is scheduled to begin in 2028, after the final investment decision is approved next July.
The path of the energy project is aimed at export, as the gas will be transported to Egypt for processing and liquefaction in existing facilities, including the Damietta LNG terminal, before being shipped mainly to Europe.
The Kronos field's reserves are estimated at more than 3 trillion cubic feet of natural gas. Block No. 6 is managed by the Italian company Eni, with a 50 percent stake, along with the French company Total Energies.
Despite the escalation of regional tensions, Saudi companies continue to attract investments, with Investcorp, the global company specializing in alternative investments, announcing its participation in an alliance led by Al-Touq Group and Thara Al-Mustaqbal Investment Company to acquire Reda Al-Khaleej Holding Company, the parent company of Reda Risk Control.
The deal represents the latest investment of the “Investcorp Saudi Pre-IPO Growth Fund,” and - according to the company’s statement - reflects its continued confidence in the growth prospects in Saudi Arabia and the Gulf Cooperation Council countries, and its focus on developing companies with strong capabilities in the sectors of growth and economic transformation in the region.
According to Bloomberg, the value of the assets managed by Investcorp amounts to about $62 billion, including assets managed by external parties. The size of its pre-IPO Saudi Growth Fund is $500 million.
Redha Al Khaleej Holding was established in Saudi Arabia in 1986, and works in the field of firefighting, safety, security and risk control solutions, and provides its services to vital sectors including oil, gas, petrochemicals and aviation. Its list of clients, according to the company’s website, includes: “Saudi Aramco” and the Saudi Basic Industries Corporation (SABIC).
The company provides integrated solutions that include product supply and distribution, local assembly and manufacturing, and systems installation and maintenance. Its team includes more than 1,700 specialized engineers and technicians, and its operations extend to 19 countries, and it also operates 4 factories in Saudi Arabia.
Abdul Mohsen Al-Touq, Chairman of the Board of Directors of Reda Al-Khaleej Holding, said that over the course of nearly four decades, the company has established its position in the firefighting, safety, security and risk control solutions market, based on its human competencies, its relationships with customers and partners, and the experience of its management team. He added that the alliance aims to enhance the company's capabilities, expand the scope of its solutions, and consolidate its position as a leading national company and a preferred partner in the sector.
For his part, Walid Majdalani, Head of Private Equity Investments in Emerging Markets at Investcorp, said that the investment embodies the fund’s strategy based on selecting leading companies with strong fundamentals, and building partnerships with management teams and shareholders who share the same vision, with the aim of accelerating growth and enhancing institutional capabilities.
In turn, Mohamed Ezzat Bey, CEO of Reda Al Khaleej Holding, said that the investment reflects the confidence of the new shareholders in the company, its staff, and its growth prospects. Pointing out that the company intends to continue enhancing its capabilities in local manufacturing and engineering, and expand into the Saudi and international markets, while maintaining quality and safety standards.
Hisham Attar, founder and managing partner of Thara Al-Mustaqbal Investment Company, said that the company looks forward to working with the management team of Reda Al-Khaleej Holding to enhance the localization of its business and expand into new markets, benefiting from its sectoral expertise and its network of local relationships.
The deal falls within the Kingdom's economic transformation strategy, which aims to expand the base of non-oil activities and enhance local manufacturing.
The “Investcorp Saudi Pre-IPO Growth Fund” previously invested in 4 companies, namely “Mitra”, “Norent”, “Tracker”, and “Salla”, before adding “Rida Al Khaleej Holding” to its investment portfolio.
